The Dow Jones Industrial Average rose on Monday, the first trading day of the month, as gains in bank shares and Apple helped Wall Street shrug off worries over U.S.-China trade and slowing manufacturing growth.
The 30-stock index traded 108 points higher after the dropping more than 100 points earlier in the day. The S&P 500 also rose 0.4% as the financials and industrials sectors rose at least 1% each.
Shares of J.P. Morgan Chase, Citigroup and Bank of America all traded higher. Apple shares’ climbed 0.9%.
Both indexes fell earlier in the session after the release of weak U.S. manufacturing data while China’s rhetoric on U.S. trade relationship intensifies.
U.S. manufacturing activity in the U.S. fell last month to its slowest pace of growth since October 2016, according data from the Institute for Supply Management. The pace of expansion also disappointed economists polled by Refinitiv. Stocks fell to their session lows after the data was released.
Ont the trade front, Chinese Vice Commerce Minister Wang Shouwen said in a white paper Sunday that Washington would not be able to use pressure to force a trade deal on Beijing. He also refused to say whether the leaders of both countries would meet at the G-20 summit to work out an agreement later this month.
Wang added: “The U.S. has backtracked, and when you give them an inch, they want a yard.”
The remarks from Wang follow a month of heightened trade tensions between the world’s largest economies. The U.S. hiked tariffs on $200 billion worth of Chinese goods in May. China retaliated with higher tariffs on U.S. imports.
“This issue with China continues to be the big elephant in the room,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. “If the two sides, China and the U.S., break down on these negotiations, we could see a 10% correction. We’re more than halfway there already and talks haven’t broken down yet.”
“There just aren’t a lot of things out there to drive the market so this issue continues to be the pivotal point,” Frederick said.
Shares of Boeing, a trade bellwether of global trade, fell 2.6%.
The benchmark 10-year U.S. note yield fell to as low as 2.071%, its lowest level since September 2017. Gold prices climbed to their highest point since late March, breaking above $1,320.
Trade worries also rattled Wall Street last week after President Donald Trump threatened to slap a 5% charge on all imports from Mexico. The threat sent stocks tumbling on Friday.
The major indexes fell more than 1% each on Friday to end a torrid month for Wall Street. Stocks logged in their first monthly decline of 2019, snapping a four-month winning streak.
The Nasdaq Composite fell 0.5%, however, amid worries about stricter regulations hitting the technology sector.
Alphabet shares slid 6.5% after reports said the Justice Department is preparing to launch an antitrust probe on Google. Facebook shares declined by 4% as the news sparked fears the social media company could also be hit with tougher regulations.
-CNBC’s Sam Meredith contributed to this report.